Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 48P

a:

To determine

Calculate the annual worth.

b:

To determine

Calculate the annual worth through calculator.

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SMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615
How much will Kingston Technologies have to pay each year in 9 equal payments, starting 2 years from now, to repay a $900,000 loan. The interest rate is 9% per year? Kingston Technologies will have to pay $ each year to repay the loan.
Compare the accumulated amounts after 5 years of P1,000invested at the rate of 10% per year compounded (a) annually, (b)semiannually,(c)quarterly, (d) monthly, (e) daily, and (f) continuously

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Basics Of Engineering Economy

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